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Financial Management

10 Things You Might Not Know About Sales Tax

Last Updated on March 10, 2017

Mark Faggiano is the founder and CEO of TaxJar, a service built to make sales tax compliance simple for eCommerce sellers. Try a 30-day-free trial of TaxJar today and eliminate sales tax compliance headaches from your life!

To make matters even more complicated, if you’re considered a “remote seller”—a seller based out of state—and have nexus in an origin-based sales tax state, you should still collect sales tax at your buyer’s ship to location.

8. Always file a sales tax return on your due date.

States want all registered sellers to “check in” even if you don’t have any sales tax to remit.

Failing to file can result in anything from a $50 penalty to the revocation of your sales tax permit.

9. Some states allow for sales tax discounts.

Some states understand that collecting and remitting sales tax places a substantial burden on a seller, and they’ll let you keep a small percentage—usually 1-3%—of the sales tax you’ve collected if you pay on time.

10. It’s not as hard as you think!

Last but not least, we talk to many sellers who get intimidated by the thought of registering for a sales tax license and collecting…

Don’t be!

Once you get the hang of sales tax—and with a sales tax automation solution to do the heavy lifting—it will be as simple as any other administrative task you handle with ease in your business.

Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those
of the author’s alone, and have not been reviewed, approved, or otherwise endorsed by any of these entities.

Mark Faggiano is the founder and CEO of TaxJar, a service built to make sales tax compliance simple for eCommerce sellers. Try a 30-day-free trial of TaxJar today and eliminate sales tax compliance headaches from your life!